GBP/USD Doji Denotes Hesitation On Test Of Critical Support

GBP/USD has managed to regain its footing in recent trade as the emergence of a Doji formation suggests hesitation from the bears. Recent price action remains indicative of a short-term downtrend which casts the immediate risk lower. A daily close below the nearby 1.6660 floor would re-open the April lows near 1.6550. However, the surge in real trading volume warns of a potential reversal - a pattern evident over recent months for the Pound.

Examining intraday price action on the four chart; a Doji formation near the 1.6660 barrier denotes indecision amongst traders. However, bullish reversal candlesticks remain glaringly absent, which casts doubt on the potential for an intraday recovery. Sellers are likely to keep the pair capped below former support-turned resistance at 1.6760.